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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                        )                               
                                                        
                        )   File No. EB-06-TC-120       
     In the Matter of                                   
                        )   NAL/Acct. No. 200732170072  
     The Hot Lead LLC                                   
                        )   FRN: 0016773533             
                                                        
                        )                               


                                FORFEITURE ORDER

   Adopted: September 16, 2010 Released: September 28, 2010

   By the Commission:

   I. introduction

    1. In this Forfeiture Order ("Order"), we issue a monetary forfeiture in
       the amount of $1,533,000 against The Hot Lead LLC ("Hot Lead") for
       willful and repeated violations of section 227 of the Communications
       Act of 1934, as amended ("Act") and the Commission's related rules and
       orders, by delivering at least 293 unsolicited advertisements to the
       telephone facsimile machines of at least 145 consumers.

   II. background

    2. This Forfeiture Order arises from four distinct Notices of Apparent
       Liability that the Commission issued against Hot Lead. The facts and
       circumstances surrounding these cases are set forth in the
       Commission's Notices of Apparent Liability for Forfeiture and need not
       be reiterated at length.

    3. Section 227(b)(1)(C) of the Act makes it "unlawful for any person
       within the United States, or any person outside the United States if
       the recipient is within the United States . . . to use any telephone
       facsimile machine, computer, or other device to send, to a telephone
       facsimile machine, an unsolicited advertisement." The term
       "unsolicited advertisement" is defined in the Act and the Commission's
       rules as "any material advertising the commercial availability or
       quality of any property, goods, or services which is transmitted to
       any person without that person's prior express invitation or
       permission in writing or otherwise." There is, however, an exception
       to the Commission's rule that permits a party to deliver unsolicited
       advertisements to persons with whom it has an established business
       relationship if certain conditions are met (i.e., the sender obtained
       the number of the facsimile machine either (i) through a voluntary
       communication by the recipient directly to the sender within the
       context of the established business relationship, or (ii) through a
       directory, advertisement, or site on the Internet to which the
       recipient voluntarily agreed to make available its facsimile number
       for public distribution).

    4. On May 5, 2006, in response to one or more consumer complaints
       alleging that Hot Lead had faxed unsolicited advertisements, the
       Enforcement Bureau ("Bureau") issued a citation to Hot Lead, pursuant
       to section 503(b)(5) of the Act. The Bureau cited Hot Lead for using a
       telephone facsimile machine, computer, or other device, to send
       unsolicited advertisements for mortgage financing, health and life
       insurance, credit and debit card services, interior shutters,
       custom-logo shirts/T-shirts, fax advertising and sales leads to
       telephone facsimile machines, in violation of section 227 of the Act
       and the Commission's related rules and orders. The citation warned Hot
       Lead that subsequent violations could result in the imposition of
       monetary forfeitures of up to $11,000 per violation, and included a
       copy of the consumer complaints that formed the basis of the citation.
       The citation informed Hot Lead that within thirty (30) days of the
       date of the citation, it could either request an interview with
       Commission staff, or provide a written statement responding to the
       citation. Hot Lead did not request an interview or otherwise respond
       to the citation.

    5. Following the issuance of the citation, the Commission received at
       least 145 complaints from consumers alleging that Hot Lead faxed at
       least 293 unsolicited advertisements to them. These violations, which
       occurred after the Bureau's citation, resulted in the issuance of four
       Notices of Apparent Liability for Forfeiture against Hot Lead, for a
       total amount of $1,533,000: one on May 27, 2008, in the amount of
       $695,000; one on July 24, 2008, in the amount of $739,500; another on
       November 5, 2008, in the amount of $47,000; and a final NAL on
       December 9, 2008, in the amount of $51,500. The NALs ordered Hot Lead
       to either pay the proposed forfeiture amounts within specified time
       periods or submit evidence or arguments in response to the NALs to
       show that no forfeitures should be imposed or that some lesser amounts
       should be assessed. Hot Lead did not respond to the NALs or pay the
       proposed forfeiture amounts.

   III. discussion

    6. Section 503(b) of the Act authorizes the Commission to assess a
       forfeiture for each violation of the Act or of any rule, regulation,
       or order issued by the Commission under the Act by a non-common
       carrier or other entity not specifically designated in section 503 of
       the Act. The maximum penalty for such a violation is $11,000 for a
       violation occurring before September 2, 2008, and $16,000 for a
       violation occurring on or after September 2, 2008. In exercising such
       authority, we are to take into account "the nature, circumstances,
       extent, and gravity of the violation and, with respect to the
       violator, the degree of culpability, any history of prior offenses,
       ability to pay, and such other matters as justice may require."

    7. Although the Commission's Forfeiture Policy Statement does not
       establish a base forfeiture amount for violating the prohibition
       against using a telephone facsimile machine to send unsolicited
       advertisements, the Commission has previously considered $4,500 per
       unsolicited fax advertisement to be an appropriate base amount. In the
       NALs, we applied that base amount to each of 254 of the apparent
       violations. In addition, where the consumer requests the company to
       stop sending facsimile messages, and the company continues to send
       them, the Commission has previously considered $10,000 per unsolicited
       fax advertisement as the appropriate forfeiture for such egregious
       violations. Here, 17 consumers specifically requested that Hot Lead
       cease sending facsimiles. Notwithstanding these requests, an
       additional 39 facsimiles were sent to these consumers. Thus, we apply
       the $10,000 amount to each of 39 of the apparent violations.

    8. Hot Lead did not respond to the NALs or pay the proposed forfeiture
       amounts. Hot Lead has failed to identify facts or circumstances to
       persuade us that there is a basis for modifying the proposed
       forfeitures, and we are not aware of any mitigating circumstances that
       would warrant a reduction of the forfeiture penalties. For these
       reasons, and based on the information before us, we hereby impose a
       total forfeiture of $1,533,000 for Hot Lead's willful or repeated
       violation of section 227 of the Act and the Commission's related rules
       and orders, as set forth in the NALs.

   IV. ordering clauses

    9. Accordingly, IT IS ORDERED, pursuant to section 503(b) of the
       Communications Act of 1934, as amended, 47 U.S.C. S: 503(b), and
       section 1.80(f)(4) of the Commission's rules, 47 C.F.R. S: 1.80(f)(4),
       that Hot Lead LLC IS LIABLE FOR A MONETARY FORFEITURE to the United
       States Government in the sum of $1,533,000 for willfully and
       repeatedly violating section 227(b)(1)(c) of the Communications Act,
       47 U.S.C. S: 227(b)(1)(c), section 64.1200(a)(3) of the Commission's
       rules, 47 C.F.R. S: 64.1200(a)(3), and the related orders as described
       in the paragraphs above.

   10. Payment of the forfeiture shall be made in the manner provided for in
       section 1.80 of the Commission's rules within thirty (30) days of the
       release of this Order. If the forfeiture is not paid within the period
       specified, the case may be referred to the Department of Justice for
       collection pursuant to section 504(a) of the Act. Payment of the
       forfeiture must be made by check or similar instrument, payable to the
       order of the Federal Communications Commission. The payment must
       include the NAL/Account Number and FRN Number referenced above.
       Payment by check or money order may be mailed to Federal
       Communications Commission, P.O. Box 979088, St. Louis, MO 63197-9000.
       Payment by overnight mail may be sent to U.S. Bank - Government
       Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO
       63101. Payment by wire transfer may be made to ABA Number 021030004,
       receiving bank TREAS/NYC, and account number 27000001. For payment by
       credit card, an FCC Form 159 (Remittance Advice) must be submitted.
        When completing the FCC Form 159, enter the NAL/Account number in
       block number 23A (call sign/other ID), and enter the letters "FORF" in
       block number 24A (payment type code). Hot Lead LLC will also send
       electronic notification on the date said payment is made to
       Johnny.Drake@fcc.gov. Requests for full payment under an installment
       plan should be sent to:  Chief Financial Officer -- Financial
       Operations, 445 12th Street, S.W., Room 1-A625, Washington, D.C. 
       20554.   Please contact the Financial Operations Group Help Desk at
       1-877-480-3201 or Email: ARINQUIRIES@fcc.gov with any questions
       regarding payment procedures.

   11. IT IS FURTHER ORDERED that a copy of the Forfeiture Order  shall be
   sent by First Class mail and certified mail return receipt requested to:
   The Hot Lead LLC, Attention: Mr. Greg Horne, 16901 Dallas Parkway,
   Addison, Texas 75001; The Hot Lead Company, Attention: Mr. Greg Horne,
   1400 Preston Road #300, Plano, Texas; The Hot Lead Company, Attention: Mr.
   Greg Horne, 5921 King William Drive, Plano, TX 75093-4350; The Hot Lead
   Company, Attention: Mr. Greg Horne, 6404 Village Springs Dr., Plano, TX
   75024-7520; and The Hot Lead Company, Attention: Mike Horne, Manager, PO
   Box 12057, Las Vegas, NV 89112.

   FEDERAL COMMUNICATIONS COMMISSION

   Marlene H. Dortch

   Secretary

   47 U.S.C. S: 227.

   See 47 U.S.C. S: 503(b)(1). The Commission has the authority under this
   section of the Act to assess a forfeiture against any person who has
   "willfully or repeatedly failed to comply with any of the provisions of
   this Act or of any rule, regulation, or order issued by the Commission
   under this Act ...."; see also 47 U.S.C. S: 503(b)(5) (stating that the
   Commission has the authority under this section of the Act to assess a
   forfeiture penalty against any person who does not hold a license, permit,
   certificate or other authorization issued by the Commission or an
   applicant for any of those listed instrumentalities so long as such person
   (A) is first issued a citation of the violation charged; (B) is given a
   reasonable opportunity for a personal interview with an official of the
   Commission, at the field office of the Commission nearest to the person's
   place of residence; and (C) subsequently engages in conduct of the type
   described in the citation).

   The Hot Lead LLC, Notice of Apparent Liability For Forfeiture, 23 FCC Rcd
   8982 (2008); The Hot Lead LLC, Notice of Apparent Liability For
   Forfeiture, 23 FCC Rcd 11674 (2008); The Hot Lead LLC, Notice of Apparent
   Liability For Forfeiture, 23 FCC Rcd 16937 (2008); and The Hot Lead LLC,
   Notice of Apparent Liability For Forfeiture, FCC 08-268 (Dec. 9, 2008)
   (collectively "NALs").

   47 U.S.C. S: 227(b)(1)(C); 47 C.F.R. S: 64.1200(a)(3).

   See 47 U.S.C. S: 227(a)(4); 47 C.F.R. S: 64.1200(f)(13).

   An "established business relationship" is defined as a prior or existing
   relationship formed by a voluntary two-way communication "with or without
   an exchange of consideration, on the basis of an inquiry, application,
   purchase or transaction by the business or residential subscriber
   regarding products or services offered by such person or entity, which
   relationship has not been previously terminated by either party." See 47
   U.S.C. S: 227(a)(2); see also 47 C.F.R. S: 64.1200(f)(5).

   See 47 U.S.C. S: 227(b)(1)(C); 47 C.F.R. S: 64.1200(a)(3)(i), (ii).

   Citation from Kurt A. Schroeder, Deputy Chief, Telecommunications
   Consumers Division, Enforcement Bureau, File No. EB-06-TC-120 issued to
   Hot Lead LLC on May 5, 2006.

   See 47 U.S.C. S: 503(b)(5) (authorizing the Commission to issue citations
   to persons who do not hold a license, permit, certificate or other
   authorization issued by the Commission or an applicant for any of those
   listed instrumentalities for violations of the Act or of the Commission's
   rules and orders).

   Bureau staff mailed the citation to 16901 Dallas Parkway, Addison, Texas
   75001 and 1400 Preston Road #300, Plano, Texas 75903.

   Following the issuance of the citation, the Commission continued to
   receive complaints from multiple consumers alleging that Hot Lead faxed
   unsolicited advertisements to them. These complaints, received after the
   Commission's citation, resulted initially in the issuance of two Notices
   of Apparent Liability for Forfeiture against Hot Lead: one on August 14,
   2007 in the amount of $2,168,500, The Hot Lead LLC, Notice of Apparent
   Liability For Forfeiture, 22 FCC Rcd 15924 (2007); and one on December 26,
   2007 in the amount of $423,000, The Hot Lead LLC, Notice of Apparent
   Liability For Forfeiture, 22 FCC Rcd 22212 (2007). Accordingly, on March
   19, 2008, the Commission issued a Forfeiture Order to Hot Lead based on
   these NALs in the amount of $2,591,500, The Hot Lead LLC, Forfeiture
   Order, 23 FCC Rcd 5282 (2008). Hot Lead did not respond to these NALs or
   the Forfeiture Order, and did not pay the forfeiture amount. The
   complaints and proposed forfeiture amount in that Order are not included
   in the present Order.

   See n.3, supra; see also 47 U.S.C. S:503(b)(1).

   Section 503(b)(2)(C) provides for forfeitures of up to $10,000 for each
   violation in cases not covered by subparagraph (A) or (B), which address
   forfeitures for violations by licensees and common carriers, among others.
   See 47 U.S.C. S: 503(b). In accordance with the inflation adjustment
   requirements contained in the Debt Collection Improvement Act of 1996,
   Pub. L. 104-134, Sec. 31001, 110 Stat. 1321, the Commission implemented an
   increase of the maximum statutory forfeiture under section 503(b)(2)(C)
   first to $11,000 and more recently to $16,000. See 47 C.F.R. S:1.80(b)(3);
   Amendment of Section 1.80 of the Commission's Rules and Adjustment of
   Forfeiture Maxima to Reflect Inflation, 15 FCC Rcd 18221 (2000)(forfeiture
   maximum for this type of violator set at $11,000); Amendment of Section
   1.80(b) of the Commission's Rules and Adjustment of Forfeiture Maxima to
   Reflect Inflation, 19 FCC Rcd 10945 (2004) (amendment of section 1.80(b)
   to reflect inflation left the forfeiture maximum for this type of violator
   at $11,000); Amendment of Section 1.80(b) of the Commission's Rules,
   Adjustment of Forfeiture Maxima to Reflect Inflation, 23 FCC Rcd 9845
   (2008) (amendment of section 1.80(b) to reflect inflation increased the
   forfeiture maximum for this type of violator to $16,000).

   See 47 U.S.C. S: 503(b)(2)(D); see also The Commission's Forfeiture Policy
   Statement and Amendment of Section 1.80 of the Rules to Incorporate the
   Forfeiture Guidelines, Report and Order, 12 FCC Rcd 17087, 17100-01 para.
   27 (1997) (Forfeiture Policy Statement), recon. denied, 15 FCC Rcd 303
   (1999).

   See  Get-Aways, Inc., Notice of Apparent Liability For Forfeiture, 15 FCC
   Rcd 1805 (1999); Get-Aways, Inc., Forfeiture Order, 15 FCC Rcd 4843
   (2000); see also US Notary, Inc., Notice of Apparent Liability for
   Forfeiture, 15 Rcd 16999 (2000); US Notary, Inc., Forfeiture Order, 16 FCC
   Rcd 18398 (2001); Tri-Star Marketing, Inc., Notice of Apparent Liability
   For Forfeiture, 15 FCC Rcd 11295 (2000); Tri-Star Marketing, Inc.,
   Forfeiture Order, 15 FCC Rcd 23198 (2000).

   See Carolina Liquidators, Inc., Notice of Apparent Liability for
   Forfeiture, 15 FCC 16837, 16842 (2000); 21st Century Fax(es) Ltd., AKA
   20th Century Fax(es), Notice of Apparent Liability for Forfeiture, 15 FCC
   Rcd 24,406, 24411 (2000).

   This penalty is in addition to the forfeiture of $2,591,500 imposed in the
   Commission's March 19, 2008 Forfeiture Order to Hot Lead. See n.10, supra.

   47 U.S.C. S: 504(a).

   (...continued from previous page)

                                                              (continued....)

   Federal Communications Commission FCC 10-162

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   Federal Communications Commission FCC 10-162